(MENAFN- Khaleej Times) A 5 per cent increase in customer retention practices translates to more than a 25 per cent increase in profits, in industries such as financial services, recent research by Bain & Company has shown. Several studies have established that the cost of acquiring new customers is five times higher than the cost of retaining existing ones.
According to google Consumer Barometer, millennials in the Middle East demonstrate more brand loyalty than their peers in the US, the UK, Japan, and Australia. In fact, in the UAE and Saudi Arabia , millennials who consider just one brand when they buy are significantly higher compared to other countries.
However, the same loyal customers are less forgiving if they encounter an issue on mobile sites. The aforementioned study revealed that about 43 per cent of millennials in Saudi Arabia will look for another mobile-optimized site if they experience any problems.
The above findings reinforce the need for foolproof, automation-led customer engagement.
In this regard. WebEngage, a full-stack retention operating system, recently joined hands with with Dubai-based full-funnel marketing consultancy Team Red Dot. The partnership will enable Team Red Dot to provide its clientele with retention-marketing services by leveraging WebEngage's full-stack solutions suite, which has garnered a reputation for best-in-class customer engagement, data analysis, and personalization across the GCC region and beyond.
“An optimised engagement, in the context of retention, involves catering to the customer's unique preferences, including the channel of choice, product recommendations, and brand communications. The effects of the optimised engagement efforts can be enhanced when these engagement campaigns are planned and executed upon analyzing first party/primary customer data. Such possibilities, in turn, enable brands to run targeted and personalised marketing campaigns, leading to better engagement and good retention rate,” said Luis Kashyap, Global Director of Partnerships, WebEngage.
“A primary prerequisite for effective customer engagement is data. However, for a lot of companies the data in question largely comprises third-party cookies, which hinders marketing efficiency. A more effective approach is to harness first-party behavioural data to refine data-driven insights and optimize segmentation and personalization. The integration with WebEngage's Retention Operating System takes after care of that priority, complementing our core competencies in full-funnel marketing activation,” noted Prashant Lodaya, General Manager, Team Red Dot.
Over 800 brands across the globe are currently using the full-stack solution's ability to optimise engagement strategies and retain customers. Since its entry into MENA, WebEngage has added over 60 new clients across sectors each quarter. WebEngage's association with Team Red Dot also exemplifies the growing cross-industry partnerships aimed at synergistic value creation in Dubai/Saudi Arabia.
“A highly engaged customer is a gift that keeps on giving - many region-specific studies have attested to the same. On the other hand, even the slightest 'disengagement' or 'negative experience' can lead to customer churn. The thin margin of error necessitates the use of artificial intelligence, machine learning, and automation technologies, which operate at scale. The incorporation of such technologies augments our full-funnel marketing capabilities and bodes well for our growth journey in the region and beyond,” said Lodaya.
“The MarTech (marketing technology) domain finds an admirer in the Middle East due to its exemplary digitalisation across economic sectors. Regional marketers are increasingly warming up to the idea of leveraging high-efficiency, human-in-the-loop models to execute marketing campaigns at scale. Such possibilities allow brand leaders to operate with a lean workforce, scale sustainably, and stay resilient against the knock-on effects of volatile economic cycles. So, in the next growth cycle, as regional brands gear up for customer acquisition and retention, MarTech makes a compelling case for adoption,” explained Kashyap.